http://www.legislation.gov.uk/ukpga/2007/3/section/607/2007-04-06Income Tax Act 2007An Act to restate, with minor changes, certain enactments relating to income tax; and for connected purposes.texttext/xmlenStatute Law Database2026-08-13Expert Participation2007-04-06 Income Tax Act 2007s. 788(7)Legal Services Act 2007Sch. 21 para. 161(b)s. 29 192 193s. 211(2)art. 2(h) Part 11 Chapter 56071This section applies if—athere is a repo in respect of securities, andbunder the repo, the original owner has transferred the securities to the interim holder.2Any difference between the sale price of the securities and the repurchase price of the securities is treated for income tax purposes as follows.3If the repurchase price is more than the sale price, the difference is treated as a payment of interest made by the repurchaser on a deemed loan from the interim holder of an amount equal to the sale price.4If the sale price is more than the repurchase price, the difference is treated as a payment of interest made by the interim holder on a deemed loan from the repurchaser of an amount equal to the repurchase price.5In either case, the payment of interest is treated for income tax purposes as—abecoming due when the repurchase price becomes due, andbpaid when that price is paid.6Subsection (7) applies in calculating the sale price for the purposes of this section if the repo involves the exercise of an option (see section 569(4)(b) and (c)).7The amount of any consideration given for the option is—ain a case falling within section 569(4)(b), added to what would otherwise be the price, andbin a case falling within section 569(4)(c), subtracted from what would otherwise be the price.8This section is subject to section 608 (exceptions) and Chapter 6 (powers to modify repo provisions: non-standard repo cases and redemption arrangements).